projections of sales‚ cash flows‚ and most importantly customer attach rates through fiscal year 2011. The customer attach rate‚ rate at which customers will buy the new service‚ is vital to the Monet technology investment decision. Discussion The marketing team has proposed 3 different pricing and attach rate structures‚ including: Sale Price: $100 Sale Price: $50 Sale Price: Free Attach rate: 15% Attach rate: 25% Attach rate: 50% Through sensitivity analysis of cash flows‚ it is determined
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LinkedIn Case Analysis Executive Summary LinkedIn Corporation went public on the New York Stock Exchange on May 18th‚ 2011. The Initial Public Offering documents listed the stock at $45 per share. It started trading the next day at an opening price of $83.20‚ peaked at $122.70‚ and closed at $94.25. This was an increase of 109.44% over the IPO price. Almost two years later‚ the stock has had its low points‚ but still its market price remains well above the value calculated by many analysts
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FIN3CSF Case Studies in Finance Semester 2‚ 2014 Case Study 5: Valuing the Enterprise Due date: 4.00 pm‚ Monday‚ October 20th‚ 2014 CASE 49: GEs Proposed Acquisition of Honeywell On March 1‚ 2001‚ the antitrust regulatory authority of the European Commission (EC) announced that it had initiated a review of the proposed takeover of Honeywell International Inc. by General Electric Company (GE). You are required to look at this situation from the point of view of an arbitrageur Jessica Gallinelli
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notes: This case uses the multiplicative version of the DuPont model to analyze operations at two retail companies. Both companies have very straightforward financial statements and most students are familiar with the companies. The analysis can be as simple or as multi-faceted as instructors choose. The case begins with the qualitative side of financial statement analysis. The questions here are unstructured so that instructors can tailor the case to their preferences. The case then walks students
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Cash is the life-blood of any business and without it survival is very unlikely. Cash is normally regarded as "just an asset that a business needs to help it to function (Atrill & McLaney‚ 2004‚ p. 124)." Though this is true‚ cash is also one of the essential elements needed for a business to grow and prosper. The reason why cash is so important is because "people and organisations will not normally accept other than cash in settlement of their claims against the business. If a business wants to
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BA 4221 – MIDTERM CASE INSTRUCTIONS: BAKE ME A CAKE Students are required to purchase this case from Ivey Publishing. See “Ordering Instructions for Students” under the Course Syllabus section of D2L. Due date: 4:30 p.m.‚ October 21st. Ivey Case: 9B13B001 Synopsis On January 14‚ 2012‚ Amy Bourgon‚ sole proprietor of Bake Me A Cake (BMAC)‚ set out to make some decisions regarding the company’s future strategy. BMAC had grown and Bourgon was considering a move because she was unsure of
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920 over the course of the 4 years. After depreciation and a 30% corporate tax rate on the Planet Karaoke Pub‚ the net income is ฿1‚523‚956. The Operating Cash Flow (OCF) for this project is ฿614‚335 for year 1‚ ฿596‚594 for year 2‚ ฿622‚769 in year 3 and ฿575‚258 in year 4. Please refer to table 1.1 for a more information regarding cash flows and the 4 year period. The alternative plan is for the
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continuous supply and have 100% control over quality standards. In this case‚ there is a big amount of capital that should be invested‚ which is needed to be analyzed in order to see whether it is viable for the company or not. The case present several information regarding expected production costs for in-sourcing and expected purchases for outsourcing. Since there is no projected information of Income Statement‚ then the only cash flow analysis that can be made is by comparing the efficiency gained by
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Cash Flow Problems In this task I will be analyzing the cash flow problems a business might experience by giving examples and describing how and why they cause cash flow problems in a business. The cash flow problems a business may experience can be: - CUSTOMERS TAKE TOO LONG TO PAY This is when a customer purchases an item without paying which leads the customer into a debt as it owes the company money. They then take too long to pay back the money which means that the company has sold
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Module 2 Critical Thinking 4. Evaluate the strengths and weaknesses of the Cash Payback Period‚ Discounted Cash Payback Period‚ NPV‚ IRR and MIRR capital expenditure budgeting methods. Prepare a recommendation for Stewart regarding the capital budgeting method or methods to use in evaluating the expansion alternatives. Support your answer. Capital budgeting techniques such as payback period‚ net present value (NPV)‚ internal rate of return (IRR) and modified internal rate of return (MIRR) all offer
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